The growth of the world economy this year is at the lowest level since the financial crisis. The Organization for Economic Cooperation and Development (OECD) lowered its growth forecast for the third time this year.
Growth is now expected to reach 2.9 percent, compared to 3.6 percent in 2018. The most recent forecast from May was based on 3.2 percent global growth this year. In March the think tank also lowered its estimates. For 2020, 3 percent growth is expected.
According to the OECD, the continuing trade war between the United States and China is causing the lowest level of growth since 2009. Moreover, there is a risk that lower growth will continue if governments do not act decisively.
“What initially seemed to be temporary trade tensions now appears to be the new long-term status of trade relations,” says an OECD economist.
Trade growth, which was the driver of economic growth after the financial crisis, has fallen from 5 percent to the negative figures since 2017.
According to the OECD, the forecasts for the United Kingdom are still surrounded by uncertainty. The UK economy is growing by 1 percent this year and by 0.9 percent next year, but only if an agreement is reached with the European Union. In the case of a no-deal Brexit, the United Kingdom will end up in a recession.